Are you an SME looking to export? Here’s what you need to know
As Paul Lindley is appointed advisor to the newly announced Board of Trade, he explains why there’s never been a better tome for SMEs to start exporting
The UK’s trading landscape has been transformed in recent years, with Brexit reshaping relationships with the EU, new trade agreements emerging and a notable rise in global economic uncertainty. Amidst all this change, business leaders and policymakers have had to rethink how best to drive economic growth.
It’s in this challenging context that I was delighted to accept Business & Trade Secretary Jonathan Reynolds’ invitation to join the Board of Trade as an adviser. It’s a privilege and hugely exciting opportunity to work with UK businesses, share my own experience and help get them trading more overseas.
While trading overseas is never completely simple, and some red tape is just the reality of doing business, the difficulties can be overcome and the benefits hugely outweigh the risks for the vast majority of SME businesses
My perspective is clear: while trading overseas is never completely simple, and some red tape is just the reality of doing business, the difficulties can be overcome and the benefits hugely outweigh the risks for the vast majority of SME businesses. My own experience, including building Ella’s Kitchen into a global brand, reinforces this view. Despite economic turbulence, companies that prioritise export agility, resilience and innovation have the best chance of maintaining control over their destiny and achieving long-term growth. The UK has always been a trading nation, and there is no reason why that should change now.
The case for SME exporters
SMEs are the backbone of the UK economy, yet many remain hesitant to expand internationally – despite the clear benefits of doing so for most. To give just one example, we knew that when Ella’s Kitchen began exporting that, given there were significant input imports in its supply chain, new international sales were helping minimise the uncontrollable fluctuating exchange rate risks, by earning revenue in multiple currencies. And of course, businesses that trade across multiple markets are also more resilient generally for, with a diversified market income stream, when growth stalls in one market there is every chance it is expanding in another. All told, a well-thought-through export strategy can bring significant advantages and the opportunity is very much there.
The latest figures suggest that after Brexit, UK exports to the EU have risen, demonstrating the enduring demand for British products. The government is also making important moves to support UK exports worldwide, and I was heartened to see the Business & Trade Secretary appoint 32 trade envoys as part of a ‘Global Growth Team’. I look forward to working with them to support UK exporters.
My three key lessons for exporters
From my own journey of expanding Ella’s Kitchen into 45 countries, I have learned three crucial lessons for businesses looking to scale internationally:
- Know your markets – first and foremost, export success depends on thorough research to understand the markets you are looking to move into – not just potential demand but also cultural and regulatory differences which need to be considered. For example, before expanding into Norway we learned that Norwegian children start school at seven, the idea of a ‘lunch box’ doesn’t exist (school meals are hot), and that Norway adds VAT to baby food. Informed by our research, we were well-placed to enter the market and become Norway’s number 1 baby food brand.
- Be ready to be flexible – One-size-fits-all approaches rarely work; don’t pick a model for your company, pick a model for each market. Successful exporters tailor their strategies according to what works best for the market in question, whether through direct retail, distributors or subsidiaries.
- Leverage ‘Brand Britain’ – The UK’s reputation for quality and innovation remains a strong selling point internationally. We must leverage the enduring appeal of ‘Brand Britain’ – a competitive advantage UK companies can deploy all around the world.
Building the Future of UK Trade
As the UK navigates a rapidly changing economic landscape, British businesses should look to seize international opportunities. With the right mix of ambition, preparation and adaptability, our SMEs can not only weather economic uncertainty but thrive in global markets.
Decisions beyond any business’ control will undoubtedly influence the broader landscape, but as my experience shows, success ultimately depends most of all on the decisions and actions of entrepreneurs themselves. In a world where demand for high-quality British products remains strong, now is the time for UK businesses to get ready and be bold, innovative and outward-looking.
Paul Lindley is an entrepreneur and advisor to the Board of Trade